African economies should boost tax collection

African economies could, and had to, boost tax collections and reduce their reliance on aid, Jean-Philippe Stijns, an economist at the Development Centre of the Organisation for Economic Cooperation and Development said on Tuesday.

Speaking on findings of the 'African Economic Outlook 2010' report, Stijns said that there was reason for optimism and that Africa was, on average, making progress in moving away from aid towards boosting its revenues from taxation.
On average, the continent as a whole collected about $441 a year a person in taxes and received only about $41 a year a person in aid.

Thus, aid represented less than 10 percent of the collected taxes on the continent.However, out of the 48 African countries for which data was available, aid exceeded tax collections in 12 countries.

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